Finance
A Maine home buyer is comparing a 15-year mortgage at 5.5% vs. a 30-year mortgage at 6.0% on a $300,000 loan. The 15-year loan has a monthly payment of approximately $2,451 and the 30-year loan has approximately $1,799. The difference in total interest paid over the life of each loan (15-year vs. 30-year) favors the 15-year loan by approximately:
A$120,000
B$155,000
C$210,000✓ Correct
D$240,000
Explanation
15-year total paid = $2,451 × 180 = $441,180. Interest = $441,180 − $300,000 = $141,180.
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